Subject: Temporary
Sales License privileges are set forth in ORS 471.190. OAR 845-005-0440 implements
this statute. Under the current rule, the holder of a Temporary Sales License may
sell wine, malt beverages, and cider for consumption on the licensed premises and
for consumption off the licensed premises. However, alcohol sold for consumption
off the licensed premises may only be sold in factory-sealed containers.

On June
26, 2013, the Governor signed Senate Bill 795 into law. Senate Bill 795 amended
ORS 471.190 to allow the holder of a Temporary Sales License to sell wine, malt
beverages, and cider in both factory-sealed containers and securely-covered containers
provided by the consumer, also known as growlers, provided that the grower does
not hold more than two gallons of liquid. Senate Bill 795 contains an emergency
clause making it effective upon passage.

On September
12, 2013, the Commission adopted a temporary rule (effective October 1, 2013) without
prior notice or hearing to comply with the statutory language now in effect.

The Commission
will proceed with permanent rulemaking while the adopted temporary rule is in place.
The temporary rule will remain in effect until permanent amendments are adopted
or until the temporary rule expires on March 30, 2014; whichever is first to occur.

Rules Coordinator: Annabelle Henry—(503) 872-5004

845-005-0440

Temporary Sales Licenses

(1) A person must obtain from the Commission
a license or authority to sell alcoholic beverages. ORS 471.405 establishes a prohibition
on sale of alcoholic beverages without a license or authority. ORS 471.406 defines
sale of alcoholic beverages. This rule sets the requirements for obtaining a Temporary
Sales License.

(2) Definitions. For this rule:

(a) “License day”
means from 7:00 am until 2:30 am on the succeeding calendar day. The license fee
is $50 per license day or for any part of a license day.

(b) “Nonprofit trade association”
means an organization comprised of individual or business members where the organization
represents the interests of the members and is registered with the state of Oregon
as a nonprofit association.

(c) “Serious violation
history” means:

(A) Two or more category III
or IIIa administrative violations of any type, or category IV violations involving
minors. However, if the circumstances of a violation include aggravation, one violation
may be sufficient; or

(B) One category I, II or IIa
administrative violation; or

(C) Two or more crimes or offenses
involving liquor laws.

(d) “Bar” means
a counter at which the preparation, pouring, serving, sale, or consumption of alcoholic
beverages is the primary activity.

(e) “Food counter”
means a counter in an area in which minors are allowed and at which the primary
activity at all times is the preparation, serving, sale, or consumption of food.

(f) “Video lottery game”
means a video lottery game terminal authorized by the Oregon State Lottery. Examples
include but are not limited to video poker and video slots. Keno monitors are not
considered a video lottery game.

(g) “Social game”
means a game other than a lottery, if authorized by a local county or city ordinance
pursuant to ORS 167.121, between players in a private business, private club, or
place of public accommodation where no house player, house bank, or house odds exist
and there is no house income from the operation of the social game.

(3) ORS 471.190 authorizes the
Commission to issue a Temporary Sales License. Temporary Sales Licenses are issued
in increments of one license day. The Commission will not approve more than seven
license days on a single application. The Commission may limit approval of any application
to a single license day or to any number of license days fewer than seven days.
The Commission may issue a Temporary Sales License only to applicants that qualify
under the Commission’s licensing standards and that are:

(a) A nonprofit or charitable
organization that is registered with the state, including nonprofit trade associations
where at least 51% of the total membership is comprised of persons that hold winery
licenses issued under ORS 471.223 or grower sales privilege licenses issued under
471.227; or

(b) A political committee that
has a current statement of organization filed under ORS 260.039 or 260.042; or

(c) An agency of the State;
or

(d) A local government or an
agency or department of a local government; or

(e) Any applicant not described
in (3)(a)–(3)(d) of this subsection, including licensees of the Commission.

(4) A Temporary Sales License
may authorize the licensee to sell wine, malt beverages and cider at retail for
consumption on the licensed premises and for consumption off the licensed premises.
All wine, malt beverages and cider sold for consumption off the licensed premises
must be in either:

(a) Manufacturer-sealed containers
that do not hold more than two and one-quarter gallons each; or

(b) Securely covered containers
provided by the consumer that do not hold more than two gallons each.

(5) A Temporary Sales License
may authorize the licensee to sell distilled liquor by the drink at retail for consumption
on the licensed premises.

(6) Applicants must apply in
writing for a Temporary Sales License, using the application form provided by the
Commission. The Commission may require additional forms, documents, or information
as part of the application. The Commission may refuse to process any application
not complete, not accompanied by the documents or disclosures required by the form
or the Commission, or that does not allow the Commission sufficient time to investigate
it. Sufficient time is typically one to three weeks prior to the event date. The
Commission may give applicants the opportunity to be heard if the Commission refuses
to process an application. A hearing under this subsection is not subject to the
requirements for contested case proceedings under ORS 183.310 to 183.550.

(7) The application for a Temporary
Sales License under this rule shall include:

(a) A written, dated, and signed
plan. An application is not complete if this plan is not approved by the Commission.
To approve a plan, the Commission must determine that the plan adequately manages:

(A) The event to prevent problems
and violations;

(B) Patronage by minors as set
out in subsection (8) of this rule; and

(C) Alcohol consumption by adults.

(b) Identification of the individuals
to be employed by the licensee to manage events on the licensed premises;

(c) Identification of the premises
proposed to be licensed;

(d) Menu and proposal showing
compliance with the food service standards of OAR 845-006-0465;

(e) Statement of the type of
event to be licensed, type and extent of entertainment to be offered, expected patronage
overall and by minors, type of food service to be offered, proposed hours of food
service, and proposed hours of operation;

(f) The recommendation in writing
of the local governing body where the licensed premises will be located;

(g) License fees as established
by ORS 471.311.

(8) A plan for managing patronage
by minors under subsection (7)(a) of this rule must meet the following requirements:

(a) If the Temporary Sales License
will be on any part of a premises, room, or area with a permanent license issued
by the Commission, the Commission must be convinced that the plan will follow the
minor posting and control plan, including any temporary relaxation of the minor
posting, assigned to that premises, room, or area under the permanent license. The
Commission must also be convinced that the plan will prevent minors from gaining
access to alcoholic beverages and any portion of the licensed premises prohibited
to minors.

(b) If the Temporary Sales License
will not be on any part of a premises, room, or area with a permanent license issued
by the Commission, the Commission must be convinced that the plan will prevent minors
from gaining access to alcoholic beverages and any portion of the licensed premises
the Commission prohibits to minors.

(9) Minors are prohibited from
the licensed premises or portions of the licensed premises as follows;

(a) Minors may not sit or stand
at a bar; however, minors may sit or stand at a food counter;

(b) Minors may not be in an
area where there is video lottery games, social games, or nude entertainment or
where such activities are visible.

(c) Minors may not be in an
area where the licensee’s approved written plan designates that minors will
be excluded.

(10) Minimum Age of Servers.
Alcohol servers at temporary sales licensed locations must be at least 21 years
of age to sell or serve alcoholic beverages, with the following exceptions:

(a) In areas of the licensed
premises not prohibited to minors, persons who are 18, 19, and 20 years of age may:

(A) Take orders for, serve and
sell alcoholic beverages for on-premises consumption if the activity is incidental
to the selling or serving of food in that area of the licensed premises, and may
sell alcoholic beverages in manufacturer-sealed containers for off-premises consumption;
or

(B) Sell tokens/script, including
verifying age, to be redeemed for alcoholic beverages or food at the event.

(b) In areas of the licensed
premises prohibited to minors, persons who are 18, 19, and 20 years of age may deliver
food, restock non-alcohol supplies and perform other non-alcohol related duties,
however the person shall not remain in the prohibited area longer than is necessary
to perform these duties.

(11) Alcohol servers at locations
licensed under subsections (3)(b)–(e) of this rule must hold valid service
permits unless specifically exempted under authority of subsection (12) of this
rule.

(12) The Commission may waive
the service permit requirement for the holder of a Temporary Sales License issued
under subsections (3)(b)–(e) of this rule, and the licensee’s alcohol
servers, if:

(a) The license is used only
for package sales; or if

(b) The Commission concludes
alcohol service by individuals who do not hold a service permit does not pose a
significant risk for public safety problems or non-compliance with liquor laws;
and

(c) Each alcoholic beverage
point-of-sale at the licensed location is staffed, at all times alcoholic beverages
are being sold or served, by an individual who has completed a Server Education
course successfully within 5 years prior to the date of the event.

(13) At events licensed under
subsection (3)(a) of this rule, before allowing alcohol servers to sell or serve
alcoholic beverages, the licensee must ensure that all alcohol servers have met
one of the following standards:

(a) The alcohol server has a
valid service permit or has successfully completed a Server Education course within
5 years prior to the date of the event, or

(b) The alcohol server has attended
training provided by the licensee, and has read, signed and dated the Commission-provided
brochure, What Every Volunteer Alcohol Server Needs to Know. The licensee-provided
training must address the topics included in the brochure, including but not limited
to: minors and proper checking of identification, and how to recognize and respond
appropriately to visibly intoxicated persons. At any time while on duty, the alcohol
server shall make the signed brochure available for immediate inspection by any
inspector or investigator employed by the Commission or by any other peace officer.

(14) If there are compliance
problems with an operator or an event, the Commission may add other requirements
for the education of servers at events licensed under this rule.

(15) The Commission may deny,
cancel or restrict a Temporary Sales License for any reason for which the Commission
may deny, cancel or restrict a regular license.

(16) The Commission may deny
or restrict a Temporary Sales License if the applicant has a serious violation history
at events previously licensed with a Temporary Sales License within the past 36
months.

(17) The Commission shall limit
the issuance of Temporary Sales Licenses to the same applicant at the same location
to no more than 31 license days from January 1 to December 31 of each year, unless
the Commission determines that the applicant would be eligible for an annual license
based on the applicant’s personal qualifications and the total number of license
days at the same location does not exceed 60 in that calendar year.

(18) The Commission may refund
the Temporary Sales License fee if the application is withdrawn by the applicant
or denied by the Commission, if the event does not take place because of circumstances
beyond the applicant’s control, or if the Commission determines the applicant
does not need a license for the event proposed in the application.

(19) When the Commission approves
a written plan under subsection (7)(a) of this rule, the licensee must follow that
written plan. Failure to follow that written plan is a category III violation.

(20) If the licensee fails to
prevent minors from gaining access to alcoholic beverages or fails to prevent minors
from gaining access to any portion of the licensed premises prohibited to minors,
the Commission may immediately prohibit minors from the licensed premises or portion(s)
of the premises.

Notes1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.